Sri Lanka officially launched its historic “2026 Licensing Round” yesterday (25), inviting international bids for four deep-water offshore blocks spanning nearly 34,000 square kilometers in the Mannar Basin—a step forward for a initiative long limited to discussions.
According to the Ministry of Energy, the program is being executed under a updated regulatory framework with full transparency. It relies on scientific estimates projecting a massive resource potential of up to 2 billion barrels of oil and 9 trillion cubic feet of natural gas within the Mannar Basin.
Speaking at the launch event, Minister of Energy Anura Karunathilaka highlighted that the offshore blocks, situated at depths ranging from 100 to 3,000 meters, present a lucrative opportunity for global investors. He emphasized that despite past efforts falling short of commercial production, the current drive moves forward with clear objectives supported by modern technology and advanced geological data.
Successful exploration stands to save critical foreign exchange currently spent on fuel imports while creating opportunities to generate export revenue through potential surplus production. The entire process is managed by the Petroleum Development Authority of Sri Lanka in accordance with the Petroleum Resources Act.
Addressing the gathering, Minister of Labour and Deputy Minister of Finance and Planning, Dr. Anil Jayantha Fernando, affirmed that the government and the Finance Ministry are prepared to manage the risks associated with this exploration to secure the nation’s future economic prosperity.
Sri Lanka’s oil exploration history traces back to the 1960s, with notable breakthroughs occurring in 2011 when Cairn Lanka discovered natural gas deposits in the ‘Barracuda’ and ‘Dorado’ fields.
Organized under cabinet approval granted in May 2025, this licensing round marks a pivotal moment toward achieving energy security and sustainable economic growth for Sri Lanka.
